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Electricity rates in Nigeria could go higher, here's why

Eleven electricity companies in Nigeria have asked the government to review their electricity prices.
Nigerians to pay more for electricity [Unsplash]
Nigerians to pay more for electricity [Unsplash]

Eleven electricity companies operating in Nigeria have formally requested the government to conduct a thorough review of their current electricity prices.

The government made this announcement through an official notice issued by the Nigeria Electricity Regulatory Commission (NERC). The companies have expressed their desire to modify their pricing structure, taking into consideration various factors such as the prevailing economic conditions and other significant factors that directly impact the provision of electricity.

The notice, as reported by Channels Television, highlighted that the companies' plea for a price review is in accordance with the Electricity Act of 2023 and other existing regulations that govern the sector.

It is worth noting that a number of electricity distribution companies in Nigeria had initially proposed implementing price increases from July 1, 2023. However, this decision was met with significant public dissatisfaction, particularly expressed through strong opposition voiced by the Nigerian Labour Congress (NLC), a prominent labor union representing workers across the nation.

The NLC, in its appeal to the government, urged authorities to refrain from approving the proposed electricity price hikes. Their argument centered around the perceived unfairness of such an increase, particularly during a time when citizens are already grappling with the burden of high petrol costs.

The public's reaction appears to have had an impact, as the electricity companies opted to suspend the planned price increase on July 1. Nevertheless, according to the notice released by NERC on Thursday, July 13, there remains a possibility of the price hike being implemented, as the companies have now formally requested a review of their rates.

NERC has also announced that they will convene a meeting to deliberate on these applications and ultimately decide whether the companies can proceed with raising their prices. In order to ensure transparency and gather public opinion on the matter, they have invited individuals to express their views and provide comments before July 20, 2023.

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